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2012 (8) TMI 398 - HC - Income TaxLong term Capital Gain - sale of shares - share broker - Revenue condemned the share transaction of the assessee and held them to sham merely because some share brokers were found to be indulged in some wrong as per report of inquiry held to detect violation of SEBI ( Prohibition of Fraudulent and Unfair Trade Practices Relating to Security Market) Regulation, 2003 - Held that:- It is clear that after getting that enquiry report, the SEBI prima facie found involvement of some of the share brokers in unfair trade practices. Fact of tinted broker may be relevant for suspicion but it alone necessarily does lead to conclusion of all transaction of that broker as tinted. In such circumstances, further enquiry is needed and that is for individual case. Such further enquiry was not conducted in that case. Just on the mere ground of share transaction with such broker does not lead to the belief that bonafide transactions are sham even if their genuineness and bonafides are established. it is also undisputed that purchase of the shares were shown by the assessees in their Balance Sheet of the last five years and genuineness of the Books of Accounts was never questioned - Decided in favor of assessee.
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